US real estate fund manager FCP has raised $1.2bn (€1bn) for its latest value-add fund.
The manager said the FCP Realty Fund V fund is expected to hold $4bn worth of assets once fully invested.
As previously reported, the Teachers’ Retirement System of Oklahoma approved a $100m commitment to FCP Realty Fund V, a fund expected to mainly target US multifamily, office and mixed-use assets.
The fund has so far completed seven deals in Texas, Georgia and New York, the manager said.
Esko Korhonen, FCP co-founder and managing partner, said: “The response to this fundraise and to our accompanying stated strategic goals was very strong, with a resulting oversubscription and only four months from first close to final.”
Korhonen said FCP will continue to focus on moderate-income, class B and C apartment sectors that have “proven durability of cashflow through all economic cycles”.
The remainder of the portfolio is targeted to include alpha generating investments in multifamily development and value-add commercial office focusing on adaptive re-use and creative office, which shows great promise as office uses continue to evolve post-pandemic.
“Our access to fully discretionary capital also allows for the flexibility to invest throughout the capital stack as equity, preferred equity, mezzanine debt or any combination of the above.
”While national in reach, we will continue to emphasise growth markets in the Southeast and Southwest.”
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